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Metering Inter-Operability Steering Group 30 October 2006 SSE Views John Sykes

Metering Inter-Operability Steering Group 30 October 2006 SSE Views John Sykes. SSE welcomes the MISG. Coordination of a wide ranging topic. Reduce effort and waste. Provide focus for interested groups.

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Metering Inter-Operability Steering Group 30 October 2006 SSE Views John Sykes

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  1. Metering Inter-Operability Steering Group30 October 2006SSE ViewsJohn Sykes

  2. SSE welcomes the MISG • Coordination of a wide ranging topic. • Reduce effort and waste. • Provide focus for interested groups. • Presence of Distributors as well as manufacturers and agents demonstrates the breadth of impact. • Everyone’s involvement needed to get a solution

  3. What is our objective ? • service niche corners of the market? • comply with European or Governmental Directives? • try to improve meter reading and billing processes? • try to reduce energy consumption? • save the people of the earth from global warming? • will we put our collective social responsibilities before or after any commercial advantage?

  4. What kind of project is this ? • Milestone industry project, akin to 1998 and NETA. • Widest possible equipment roll-out. • Keep the market running during implementation. • Change the hearts and minds of customers. • Unknown outcome – risky, but worth it? • Intangible benefits. • Central drivers needed to ensure success.

  5. Commercial Framework is key • Interaction between regulatory regime, multilateral arrangements and bilateral contracts • PSA, MRA and BSC were significant tasks • Dependency of gas on electricity • Device is part of the asset chain supporting supply competition • Governance of core functionality

  6. Commercial Framework (cont’d) • Boundary between core and value added – might be in the same device! • Access right/obligations to core functionality • Right to not take value added functionality • Shorter term interests of suppliers • Longer term interests of asset owners • An opportunity to introduce similar governance in gas and electricity • Current framework in metering competition is not adequate

  7. Who pays? • In the end, the customer pays. • The cost will be large, the benefits intangible. • Need to keep costs down. • Use the procurement leverage of the industry. • Keep installation costs down by density of operations.

  8. Interoperability is not just technological – the Commercial Framework is equally essential and is not a trivial part of this project. SSE believes that an administered approach is the only one appropriate to a project with the kind of profile outlined.

  9. Metering Inter-Operability Steering Group30 October 2006SSE ViewsJohn Sykes

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